It is also regarded as the only advantage that a firm can have over the others for it to be able to survive in a business environment that is unpredictable.
Through knowledge management, an organization will be able to view all its processes as knowledge processes which include creation of knowledge, dissemination, upgrading of knowledge and all this will ensure the survival of the organization. Knowledge management requires the involvement of people, technology and processes that are in continuous interaction with each other. Knowledge management ensures the survival of organizations in a business world which keeps changing day by day due to the stiff competition.
Organization of knowledge requires responsibility of knowledgeable employees and specialists who will be able to manage knowledge as an intangible asset. The process of knowledge management therefore requires the implementation of the following for it to be effective and they are: knowledge creation, knowledge collection, knowledge organization, knowledge refinement and knowledge dissemination. An ideal knowledge organization is one in which employees who are in different fields are able to exchange and produce knowledge by using technology. This way knowledge will be internalized and adopted within the culture of the organization.
Knowledge creation and transfer (sharing) are the main basis of the success of a company in this era as they determine the way in which organization leaders will develop intellectual capital. In order for companies to be able to compete successfully, they have to ensure that they create knowledge through hiring, developing and maintaining competent and excellent managers as they will be able to accumulate valuable knowledge assets. Organizations have to keep creating new knowledge continuously as knowledge keeps changing and it can become obsolete in the future (Ichijō & Nonaka, 2007, 4).
Tacit and explicit are the